State pot regulators have alleged that a Lindenhurst cannabis distributor hatched a “rent-a-license” scheme that allowed unlicensed companies to sell weed products through a Long Island warehouse.

Omnium Health, also known as Omnium Canna, faces the possible loss of its state operating license as well as other penalties, including fines and a product recall, the state Office of Cannabis Management said Monday in a news release.

The allegations are contained in a notice of pleading, a legal warning of suspected illegality.

Omnium Health was given a Nov. 3 deadline to provide documents showing whether it is complying with state law, an OCM spokeswoman said Friday.

The spokeswoman, Taylor Randi Lee, said the suspected unlicensed products are not believed to pose health risks to consumers.

Omnium Health officials did not respond to phone calls and emails seeking comment Friday.

In a statement Monday, Felicia A.B. Reid, OCM’s executive deputy director, said the company engaged in a “blatant breach of the licensing rules designed to ensure transparency and fairness in the legal market.”

“Our state’s cannabis laws are clear: licenses are not transferable and only licensed operators may produce and distribute cannabis,” Reid said.

Omnium Health, which operates a Hauppauge warehouse, was planning a $15 million expansion, including a 45,000-square-foot cannabis processing facility in western Suffolk County, according to a 2023 Newsday story about the company’s plans. Founder and chief executive Howard Hoffman declined to identify the location of the new facility at that time.

The company’s website says it distributes pot products to 107 dispensaries in Nassau and Suffolk counties, the five boroughs of New York City, Westchester County and the Mid-Hudson Valley.

OCM said Monday it launched its investigation in February following a complaint about Omnium’s business practices. The agency said its investigation found Omnium charged unlicensed suppliers rent to use its facilities. 

“This arrangement gave unlicensed operators an unearned backdoor into New York’s regulated market,” the agency said.

Lee, the OCM spokeswoman, said in a statement Friday there were “no known health or safety concerns associated with the recalled cannabis products,” adding the allegations against the company were “a precautionary regulatory action tied to licensee compliance violations — not to product quality or contamination issues.”

She added: “Omnium Health has until Nov. 3 to formally respond to the charges and provide the required documentation under the state’s regulatory process. The Office of Cannabis Management continues to monitor the situation closely and will take any additional actions needed to protect consumers and uphold the integrity of New York’s regulated cannabis market.”

Hugo Rivas, spokesman for the Long Island Cannabis Coalition, a trade group representing dispensaries, said the group was surprised by the allegations, adding Omnium had been a supporter of the coalition’s activities.

He said the charges may reflect confusion about state marijuana regulations in a still-emerging industry. 

“As people understand the laws and how the industry works, there could be mistakes that occur,” Rivas said Friday in a phone interview, citing OCM’s recent clarification of rules intended to keep pot shops away from schools. 

“There’s always going to be a little bit of turbulence in a situation that is forming, as New York is,” Rivas said.

Carl MacGowan is a Long Island native who covers Brookhaven Town after having previously covered Smithtown, Suffolk County courts and numerous spot news and feature stories over his 20-plus year career at Newsday.